Head to Head Analysis: Yirendai (NYSE:YRD) vs. Upwork (NASDAQ:UPWK)

Upwork (NASDAQ:UPWK) and Yirendai (NYSE:YRD) are both small-cap computer and technology companies, but which is the better stock? We will contrast the two businesses based on the strength of their valuation, dividends, earnings, risk, profitability, analyst recommendations and institutional ownership.

Profitability

This table compares Upwork and Yirendai’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Upwork	14.65%	18.76%	9.03%
Yirendai	0.31%	0.18%	0.13%

Valuation and Earnings

This table compares Upwork and Yirendai”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Upwork	$787.78 million	1.87	$115.43 million	$0.84	13.42
Yirendai	$817.84 million	0.23	$5.80 million	$0.03	72.83

Upwork has higher earnings, but lower revenue than Yirendai. Upwork is trading at a lower price-to-earnings ratio than Yirendai, indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

Upwork has a beta of 1.18, meaning that its share price is 18% more volatile than the S&P 500. Comparatively, Yirendai has a beta of 1.13, meaning that its share price is 13% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Upwork and Yirendai, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Upwork	0	6	7	0	2.54
Yirendai	1	0	0	0	1.00

Upwork presently has a consensus price target of $22.60, indicating a potential upside of 100.53%. Given Upwork’s stronger consensus rating and higher possible upside, analysts clearly believe Upwork is more favorable than Yirendai.

Institutional & Insider Ownership

77.7% of Upwork shares are held by institutional investors. Comparatively, 2.0% of Yirendai shares are held by institutional investors. 7.5% of Upwork shares are held by company insiders. Comparatively, 42.2% of Yirendai shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Summary

Upwork beats Yirendai on 11 of the 14 factors compared between the two stocks.

About Upwork

Upwork Inc., together with its subsidiaries, operates a work marketplace that connects businesses with various independent professionals and agencies in the United States, India, the Philippines, and internationally. The company’s work marketplace provides access to talent with various skills across a range of categories, including administrative support, sales and marketing, design and creative, and customer service, as well as web, mobile, and software development. Its work marketplace also enables clients to streamline workflows, such as talent sourcing, outreach, and contracting. The company’s work marketplace offers access to various functionalities for remote engagements with talent, including communication and collaboration, ability to receive talent invoices through their work marketplace, and payment protection. Its marketplace offerings include Upwork Payroll and Upwork Enterprise, as well as managed and escrow services. The company was formerly known as Elance-oDesk, Inc. and changed its name to Upwork Inc. in May 2015. Upwork Inc. was incorporated in 2013 and is headquartered in San Francisco, California.

About Yirendai

Yiren Digital Ltd. provides financial services through an AI-powered platform in China. Its platform provides a suite of financial and lifestyle services. The company offers financial services, which provides a portfolio of loan products to borrowers; insurance brokerage services; and consumption and lifestyle services, including non-financial products and services to meet various consumer needs. It supports clients at various growth stages, addressing financing needs arising from consumption and production activities, and augmenting the well-being and security of individuals, families, and businesses. The company was formerly known as Yirendai Ltd. and changed its name to Yiren Digital Ltd. in September 2019. Yiren Digital Ltd. was founded in 2012 and is based in Beijing, the People's Republic of China. Yiren Digital Ltd. operates as a subsidiary of CreditEase Holdings (Cayman) Limited.